March 26, 2020
The Fund’s performance in March has been driven by the market’s response to the economic repercussions of the growing global pandemic. Several of the previous periods of dramatic underperformance in the Fund (2011, 2013, 2015) were correlated to a widening of credit spreads, driven by short-lived economic fears. This time, we attribute the Fund’s underperformance not only to spread-widening, but also to the quick revaluing of assets and debts that has taken place in a multitude of industries to which the Fund has exposure, including Lodging, Retail, Real Estate, Energy and Aviation.
This reminds us most of the downdraft the Fund experienced in 2008 during the financial crisis. As was necessary then, we anticipate extensive government intervention will be required to successfully stem the economic damage from the pandemic. The efficacy of these efforts is too early to fully determine. We do not anticipate a quick recovery in the Fund’s NAV. It will take time for the Fund to generate the interest to work toward a retracement of its recent decline, and we are focused on that end. We do believe there are opportunities to be had in this environment.
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NET ASSET VALUES*
*as of March 27, 2020
Past performance does not guarantee future results.
Mutual fund investing involves risk, principal loss is possible. Investments in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. Investments in bonds of foreign issuers involve greater volatility, political and economic risks, and differences in accounting methods. Investment by the Fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. Results include the reinvestment of all dividends and capital gains distributions.
The Thompson IM Funds are offered only to United States residents, and information on this site is intended only for such persons. Nothing on this web site should be considered a solicitation to buy or an offer to sell shares of any Thompson IM Fund in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction.
Before you invest in the Funds, please refer to the prospectus for important information about the investment company, including investment objectives, risks, charges and expenses. You may also obtain a hard copy of the prospectus by calling 1-800-999-0887 . The prospectus should be read carefully before you invest or send money.
Mutual fund investing involves risk. Principal loss is possible.
The Thompson IM Funds are distributed by Quasar Distributors, LLC.